Stellar (XLM) and Cardano (ADA) to ATH in this Cycle? Why this new Bitcoin Layer 2 Blockchain is getting so much Attention

Whales are eyeing affordable yet promising assets and Stellar, and Cardano are strong contenders with significant potential. 

Meanwhile, PlutoChain ($PLUTO), the first hybrid Layer-2 solution for Bitcoin, could attract significant interest from whales.

PlutoChain could bring smart contracts and decentralized applications directly to Bitcoin, potentially enhancing its utility and scalability. The project’s testnet has already processed over 43,200 daily transactions, demonstrating its scalability and efficiency.

Let’s break it down below!

Bitcoin’s DeFi Revolution? PlutoChain Might Make it Happen

Bitcoin’s biggest strength - its security - has also been its greatest limitation. With slow transaction speeds and no built-in support for smart contracts, it has remained a digital store of value rather than a thriving application ecosystem. PlutoChain ($PLUTO) plans to change that.

As the first hybrid Layer-2 solution for Bitcoin, PlutoChain could enable smart contracts, DeFi, NFTs, and even AI-powered dApps - all running directly on Bitcoin’s secure foundation. 

It offers an average block time of just 2 seconds, bringing Ethereum-level functionality without relying on Ethereum, Solana, or Cardano. Through its innovative Layer-2 technology, it could far and away surpass Bitcoin’s 10-minute block time.

This might unlock a massive opportunity in Bitcoin’s underdeveloped DeFi sector, where the total value locked is just 0.13% of Bitcoin’s market cap - compared to Ethereum’s 10%.

PlutoChain’s Ethereum Virtual Machine (EVM) compatibility is another potential game-changer. 

Developers could be able to migrate Ethereum-based applications seamlessly, potentially bridging the best of both worlds - Ethereum’s flexibility and Bitcoin’s unmatched security.

Beyond technology, PlutoChain is built for the community. A governance system where users could shape protocol upgrades, ensuring a decentralized, user-driven future is what PlutoChain has in mind. 

With over 43,200 transactions processed daily on its testnet, PlutoChain isn’t just a concept - it’s proving its potential in real-time.

Security is also a priority, with audits from SolidProof, QuillAudits, and Assure DeFi confirming its reliability. As whales take notice, this could be the moment Bitcoin evolves beyond a store of value into a true innovation hub.

Stellar's Cross-Border Innovations Propel XLM Toward $1 Milestone

Stellar's efficient cross-border payment system and partnerships with major financial institutions like MoneyGram are key drivers behind bullish forecasts.

Additionally, its growing role in tokenization and remittances positions XLM as a long-term bet in the evolving blockchain landscape. Experts from Binance are very optimistic regarding Stellar’s future, anticipating a potential surge to $1.50 in the current market cycle. 

Of course, not all the predictions are this positive, but most of them agree that XLM has a big explosion potential and should be closely monitored.

Can Cardano’s Network Upgrades Push It to the Next Level?

Cardano's recent network upgrade on January 29, 2025, aims to enhance scalability and performance. 

This upgrade is part of the Basho era, which focuses on optimizing the network's capacity and throughput. By improving transaction speeds and reducing fees, Cardano positions itself to support a growing number of decentralized applications and users. 

These advancements could increase adoption and are one of the major reasons why Cardano is one of, or possibly even the best option under $1.

Final Words

Stellar, and Cardano stand out as top projects under $1, offering real-world asset tokenization, cross-border payments, and scalable dApp ecosystems.

On the other hand, PlutoChain could redefine Bitcoin’s potential. As the first hybrid Layer-2 solution, PlutoChain might bring smart contracts, DeFi, and NFTs to Bitcoin, offering block times of just 2 seconds and potentially enabling Ethereum-like functionality.

While early users are taking notice, PlutoChain isn’t just focused on innovating, but on the possibility to unlock Bitcoin’s untapped potential.

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This article does not offer financial advice. Cryptocurrencies can be unpredictable and carry risks. It is important to conduct thorough research before acquiring any crypto asset. Forward-looking statements carry risks and are not guaranteed to be updated.